Magellan Looks To Acquire Amylin's Cabrillo Division

Magellan Laboratories Inc. has signed a non-binding letter of intent to enter into a definitive agreement for the purchase of Amylin Pharmaceuticals Inc.'s Cabrillo Laboratories division. The letter of intent provides that a definitive agreement will include a cash payment of $2 million. Amylin would also receive a $500,000 credit for future product development services that the Company would receive from Cabrillo Laboratories under Magellan's control.

Under the terms of the agreement, Magellan will become a preferred service provider to Amylin and will retain certain product development capabilities to complete Amylin's planned NDA filing for pramlintide, its diabetes drug candidate currently in Phase III clinical studies.

Joseph C. Cook, Jr., Amylin's chairman and CEO, explained, "The planned sale of Cabrillo to Magellan is strategically important because it allows Amylin access to Cabrillo's resources to support the continued development of pramlintide while reducing the Company's burn rate. Additionally, this proposed transaction would advance our new business strategy focusing on the earlier stages of drug development." Specifically, Amylin is focussed on metabolic disorders and has pioneered research of the hormone amylin. Pramlintide is a patented synthetic analog of human amylin for the treatment of diabetes.

For more information: Amylin Pharmaceuticals Inc., 9373 Towne Centre Drive, San Diego, CA 92121, USA. Telephone: 619-552-2200. Fax: 619-552-2212.